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Karnataka Bank Ltd
NSE: KTKBANK BSE: 532652 INE614B01018 Financial Services Bank 🔎 Screen
Microcap 250
₹1 Cr
Market Cap
0.00
P/B
3.07%
NIM
10.4%
ROE
2.78%
GNPA
Fin. Margin
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Karnataka Bank is engaged in providing a wide range of banking & financial services involving retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business.

✓ Strengths 1
  • Stock is trading at 0.75 times its book value
! Concerns

No concerns data yet.

Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Strong beat — PAT surged 40% QoQ and 62% YoY, driven by margin expansion, sharp asset quality improvement, and lower provisions, though annual NIM missed target and top-line growth remained sluggish. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹1,241.81 Cr
+2.72% YoY (Net Interest Income + Other Income)
NIM
3.07%
+15 bps QoQ; annual NIM 2.88% missed 3.0-3.3% target
PAT
₹408.19 Cr
+61.74% YoY, +40.37% QoQ
GNPA
2.78%
-54 bps QoQ, -30 bps YoY; NNPA 0.98% (-33 bps QoQ)
What Went Right
  • PAT jumped 40% QoQ to ₹408 Cr, aided by lower provisions (₹90 Cr vs ₹95 Cr QoQ) and improved NIM.
  • NIM expanded 15 bps QoQ to 3.07%, helped by cost of deposits falling to 5.37% (from 5.46% QoQ).
  • Asset quality improved sharply: GNPA fell to 2.78% (‑54 bps QoQ); slippage ratio dropped to 0.20% from 0.47% QoQ.
  • CASA ratio rose 208 bps QoQ to 33.61%, with CASA deposits growing 11% QoQ to ₹36,560 Cr.
  • PCR (excl. TWO) climbed 416 bps QoQ to 65.39%, and the restructured portfolio shrank 7% QoQ to ₹806 Cr.
What to Watch
  • Net interest income grew only 6.43% QoQ to ₹843 Cr, lagging 8% QoQ loan growth, as yield on advances dropped to 8.78% (‑65 bps YoY).
  • Employee expenses collapsed 46.8% YoY to ₹280 Cr (from ₹526 Cr) without clear explanation, raising questions about sustainability and comparability.
  • Other income declined 6.86% YoY to ₹399 Cr, dragged by lower treasury gains.
  • Annual NIM of 2.88% missed management's target of 3.0-3.3%; cost-to-income ratio of 56.34% was at the upper end of the 53-56% range.
  • Restructured book (₹806 Cr) and SMA-2 (₹635 Cr) remain sizeable, with 56% of restructured loans requiring 30% recovery for upgrade.
Management Guidance
  • FY26 targets: Cost of Funds 5.3-5.6%, NIM 3.0-3.3%, Cost-to-Income 53-56%, ROA 1.1-1.2%, NNPA 1.0-1.2%, CASA 30-32%.
  • Actuals: Cost of Funds 5.55% (in-range), NIM 2.88% (missed), Cost-to-Income 56.34% (slightly above), ROA 1.05% (missed), NNPA 0.98% (within), CASA 33.61% (above).
Investor Lens
Q4 delivered an eye-catching profit beat, but the underlying revenue story is muted: NII growth trailed loan expansion, and other income slid. The huge drop in employee costs is a one-off flag; core operating profit growth excluding that is less impressive. Annual NIM and ROA missed management's own targets, tempering the quarterly shine. The transformation is clearly working on asset quality and CASA, but top-line momentum needs to pick up. Watch for sustainable slippage below 0.30%, loan growth diversification beyond the 8% QoQ spurt, and whether NIM can inch toward 3.3% without aggressive yield-on-advances erosion. Credit cost at 0.10% is unsustainably low — normalisation could compress PAT growth.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED PAT jumps 61% YoY to ₹408 Cr, margin improves QoQ but flat revenue.
Revenue
Revenue at ₹2,257 Cr was nearly flat YoY (0.0% change) but increased 1.7% QoQ. Other income contributed ₹399 Cr, while interest income stood at ₹1,414 Cr.
Profitability
Net profit surged 61.3% YoY to ₹408 Cr, with EPS rising from ₹6.68 to ₹10.80. PBT was ₹525 Cr, and the effective tax rate was 22%.
Margins
Financing margin was 6%, down 400 bps YoY but up 200 bps QoQ. Margin compression persists despite sequential improvement.
Cash Flow
Skip — not applicable for banking/financial companies.
Balance Sheet
Total assets stood at ₹1,29,355 Cr with reserves of ₹12,846 Cr. No details on deposits or advances were provided.
Key Risks
NIM compression from rising cost of funds, potential asset quality stress, and regulatory changes impacting margins.
Outlook
Profitability improved sequentially, but revenue remains stagnant. Sustained loan growth and margin recovery are critical for future performance.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Corporate Banking
924
879
Other Banking Operations
64
128
Retail Banking
1,003
1,161
Treasury Operations
475
448
Total 2,465 2,616

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

🏦 Banking KPIs

NIM, GNPA, CASA, CAR, ROA, ROE and more — extracted from investor presentations
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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